Facebook Reports Stellar Second Quarter With 1.71 Billion Users, Video Growth

Facebook continued its growth streak with second-quarter earnings results on Wednesday that outperformed Wall Street expectations.

Facebook CEO Mark Zuckerberg speaks at a town hall at Facebook's headquarters in Menlo Park, California, in 2015.STEPHEN LAM / Reuters file
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Facebook continued its growth streak on Wednesday with second-quarter earnings results that outperformed Wall Street expectations, largely due to the company's strong user engagement and dominance in mobile and digital advertisements.

The company reported revenue of $6.44 billion, according to a release posted after the close of the market today.

Analysts had expected Facebook to report $6.02 billion in earnings, with earning per share at 82 cents, according to a consensus estimate from Thompson Reuters.

Facebook CEO Mark Zuckerberg speaks at a town hall at Facebook's headquarters in Menlo Park, California, in 2015.STEPHEN LAM / Reuters file

"Our community and business had another good quarter," Mark Zuckerberg said in a statement. "We're particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services."

Facebook reported 1.71 billion users. Daily active users were 1.13 billion on average for June 2016, marking a 17 percent increase year over year.

While Facebook is closing in on the two billion user milestone, Zuckerberg said in a call with investors today the company will focus its efforts in expanding the community.

"We have five billion people left to connect," Zuckerberg said. "The biggest thing we can do to help people and grow the business is to focus on improving and expanding this already dynamic and large community we have using the Facebook app."

The continued dominance of mobile was also reflected in Facebook's report, with 1.03 billion people using Facebook every day on their phones, an increase of 22 percent from this time last year.

Facebook's live video product has been a breakout this quarter, with the platform being used by everyone from the now infamous "Chewbacca Mom" to being used to capture the recent rash of police shootings.

Debra Williamson, an eMarketer analyst, told CNBC earlier Wednesday that there weren't really "any signs of any challenges at Facebook."

"Everything is looking to us up and to the right. That would include both ad revenue and usage. The company has done a really remarkable job of establishing advertising products for any kind of advertiser, small or large, and any kind of objective," Williamson said.

The results come as Snapchat continues to surge in popularity.

But Morgan Stanley's Brian Nowak wrote in a note to clients on Monday that he didn't believe Snapchat's surge was cutting into Facebook's daily active user growth and engagement.

"Our comScore analysis shows strong FB DAU [daily active user] growth in the 18-24 year old, 25-34 year old and total US mobile user bases," Nowak wrote in the memo obtained by CNBC.